D Post considers US unit sale
ByUlf Brychcy in Hamburg
Published: January 24 2008 23:54 | Last updated: January 24 2008 23:54
Deutsche Post, the world’s biggest logistics group, is considering selling its ailing DHL express delivery unit in the US as part of a wider turnround plan that could be announced within months, FT Deutschland, the Financial Times’s sister paper, has learned.
It is understood that Klaus Zumwinkel, the group’s chief executive, is planning to sell the express unit and to merge Postbank, the group’s profitable banking subsidiary, with another bank.
The measures are due in part to pressure from big investors and analysts who have criticised Mr Zumwinkel over losses at the US arm. Institutional investors have called for the separation of Postbank to raise reserve assets.
Discussions with Frederick Smith, the chief executive of Fedex, are under way, according to insiders. One possible outcome could involve Fedex taking control of the whole parcel delivery business of Deutsche Post in the US. In return Deutsche Post could assume control of Fedex services in Europe.
Deutsche Post declined to comment on the plans.
John Allan, who has been chief financial officer of the group since September, told FT Deutschland: “We have several options. Some can be realised in the short term – some not.”
Mr Zumwinkel is due to hand over as chief executive to Frank Appel, his designated successor, by the end of November. “Zumwinkel wants to leave the house clean”, said one Deutsche Post executive.
The group is understood to be intending to sell its US express delivery business by the end of May. A spin-off of Postbank could come in the last six months of the year.
Mr Allan is considered the driving force behind the reorganisation plans. He is pushing for the group to end its US express delivery activities, which have generated losses of up to €7bn for Deutsche Post